State Bank of Pakistan (SBP) Governor Jameel Ahmad has called on financial institutions to ensure human judgment remains superior to artificial intelligence (AI) decisions, particularly in critical areas like loan approvals and customer due diligence.
Speaking at the sixth AlBaraka Forum Regional Conference – Pakistan 2026, themed “Islamic Economy in the Digital Age – Innovation Within The Framework of Compliance,” the governor acknowledged the rapid adoption of AI in banking to boost efficiency, enhance risk management, and reduce costs.
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However, he stressed that “human oversight remains essential to monitor AI-driven decisions, especially in sensitive areas such as credit approval and customer due diligence.” This caution comes as Pakistan’s banking sector embraces digital transformation, with mobile banking apps, branchless banking, wallets, and electronic money institutions driving 78% of digital retail transactions.
The governor highlighted the broader context of digital progress, including SBP initiatives like Raast, Assan Mobile Account, digital onboarding, Roshan Digital Account, and licensing of digital banks, which have expanded formal financial access. He noted global trends where over 70% of people use digital financial services and 80% are open to shifting to digital banking, signaling changing consumer expectations.
In the realm of Islamic finance, Ahmad emphasized that technology should serve socioeconomic goals, promote inclusion for small businesses, farmers, and women entrepreneurs, and align with Shariah principles of fairness, transparency, and shared prosperity. He warned against risks where technology merely replicates conventional models, urging robust data protection and high regulatory standards beyond basic compliance.
This guidance underscores the need for a balanced approach in Pakistan’s evolving financial landscape, where innovation must not compromise ethical and human-centric decision-making.